"The industrial sector has so far used fuels with market price or non-subsidized fuels," Secretary General of the Industry Ministry Ansari Bukhari said.Jakarta (ANTARA News) - The Industry Ministry gave the assurance on Wednesday that the government`s policy to slash fuel subsidy will have no impact on production cost structure.
"The industrial sector has so far used fuels with market price or non-subsidized fuels," Secretary General of the Industry Ministry Ansari Bukhari said in a press statement.
He said the imminent subsidized fuel price hike will likely have a little impact on transportation cost and sectors using transportation services including the industrial sector.
"The impact on production cost will not too big," he said.
He said the increase in the prices of subsidized gasoline and diesel oil which is expected to reach 44 percent and 22 percent each will raise transportation cost by 23.8 percent and 11.9 percent respectively.
"However, the 44 percent increase in the price of subsidized gasoline will raise production cost by an average of 1.2 percent," he said.
The production costs of several strategic commodities, such as foods and beverages will only increase 0.63 percent, cement 0.66 percent, and textile and footwear 1.54 percent, he said.
Meanwhile, the increase in the price of subsidized diesel oil will raise production cost by an average of 0.6 percent, with the production costs of several strategic commodities, such as foods and beverages expected to increase 0.31 percent, cement 0.33 percent, and textile and footwear 0.77 percent, he said.(*)
Editor: Heru Purwanto
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